Quantity vs. Quality - the billable hour mousetrap

Billable hours have become a vicious task master hanging over lawyers’ heads, discouraging efficiency. Corporate clients, in particular, are choosing “pedigree” and "prestige" of their lawyers over “quality” in legal services and have only themselves to blame for the outrageous legal bills on their desks.

In this time of economic downturn, with companies failing right and left, only the strong and flexible companies will survive. Stop paying outrageous hourly rates and look for quality legal counsel that will provide cost-efficient and useful services. Your company's survival may depend on it.

BLOG FLAG BLOG Sign Association of Legal Professionals is a nationwide community of freelance attorneys, paralegals, court reporters, interpreters was created to assist freelancers in optimizing the of their businesses, as well as to raise the profile of life balance. We are eager to share our experiences Amanda Mineer Co-Founders, NAFLP ASSOCIATION membership is free for a limited time with "freelance08" reduced prices on NAFLP N E S D A Y , J A N U A 2 8 2 0 0 9 vs. Quantity -the billable hour vicious task master hanging over them to abandon all life quest of squeezing most hours, most discourages efficiency to a 20-hour has no correlation to the “quality” Quality” is defined here as something Is 20-higher than the 8-hour brief? never know. is blatant fee gouging. facts seem self-evident to including R. Chesler in the Forbes article "Kill hour makes not for and win a case early on, you put yourself you get bogged Asia, it facts are still the legal profession. In the January 2009 issue California "Will a bad economy Gary Thelen, Reid going to 20 Newsletter Live Traffic Billing Arrangements at checkout to discount Accountancy * Email * First Name * Last Name * = Required Field Submit National Association of Freelance Legal Professionals: Quality vs. Quantity -the billable Page 1 of 6 http://freelancelegalprofessionals.blogspot.com/2009/01/quality-vs-quantity-billable-hour.... 1/28/2009 Quality ... SEARCH BLOG FLAG BLOG Next Blog» Create Blog | Sign In National Association of Freelance Legal Professionals NAFLP is a nationwide community of freelance attorneys, paralegals, court reporters, interpreters & other freelance legal professionals. NAFLP was created to assist freelancers in optimizing the financial and personal success of their businesses, as well as to raise the profile of freelancing as a career choice that can optimize work-life balance. We are eager to share our experiences and hear what you have to say. Melody Kramer & Amanda Mineer Co-Founders, NAFLP JOIN THE ASSOCIATION Subscribe to the NAFLP Newsletter NAFLP membership is free for a limited time with code "freelance08" * Membership benefits included reduced prices on NAFLP events, sponsorprovided services, and more. * W E D N E S D A Y , J A N U A R Y 28 , 2009 * Quality vs. Quantity -the billable hour mousetrap * Billable hours have become a vicious task master hanging over lawyers’ heads, encouraging them to abandon all life outside of the office in quest of squeezing the most hours, and thus the most FEEDJIT Live Traffic Map money, out of the day. It discourages efficiency of work by definition Recent Visitors (why finish a project in 8 hours if you can stretch it out to a 20-hour Top San Diego Blogs billable project?) and has no correlation to the “quality” of the work Click to get FEEDJIT product. “Quality” is defined here as something of value or use to a client. Is the 20-hour brief a “higher quality” than the 8-hour brief? RECENT NAFLP EVENTS -At best, the client will never know. At worst, it is blatant fee gouging. Recordings Available Beyond Hourly Billing: How to These facts seem self-evident to many, including veteran attorney Implement Flat Fee and Other Evan R. Chesler in the Forbes article "Kill the Billable Hour": Alternative Billing Arrangements Lisa, Solomon, Legal Research and The billable hour makes no sense, not even for lawyers. If you Writing Pro are successful and win a case early on, you put yourself out of Purchase the Recording work. If you get bogged down in a land war in Asia, you make Enter NAFLP at checkout to get a more money. That is frankly nuts. 25% discount Of course it is nuts, but these self-evident facts are still lost on far Tax Planning For The Freelance too many involved in the legal profession. In the January 2009 issue Legal Professional TeleclassJere of the California Bar Journal, the article "Will a bad economy force Battan, Battan Accountancy more changes in the profession?", cites Richard Gary of Gary Advisors, Purchase the Recording -$29.00 a former chair of Thelen, Reid and Priest, as thinking the billable hour isn’t going to disappear. Freelance Freedom: How to Get Started as a Contract Lawyer Lisa Solomon, Legal Research and Writing Pro “We’ve been thinking about going to a different model for 20 Purchase the Recording -$72.75 blogspot.com/2009/01/quality-hour... Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=64495603-38d2-4154-b2f1-2163eb34a306people will mousetrap.” However, added, “the best way to measure value it of measuring the amount of work that particular matter.” amount of time project of the end product’s value. Lawyers have truth. plaintiff’s against lawyer who seemed practice” law. I vividly recall receiving 25-spaced motion to the only eyes My was one page, double-the statute supporting won the motion. Which was one that least 25 hours or the one that successfully convinced judge? judge in New a-day fee application from law Dewey for be excessive. U.District Judge Chin said that the “in the of fraud have and he questioned the firm’s 950/some some 285/summer high deserve "fee allowances (Judge case). students (remember, summer associates even school) pay such excessive however, especially large need acknowledge own role in encouraging billing by Law firm to attract higher net-value clients, has too long on same – Not cost efficiency. Not being demonstrate legal opinions. Not being successful than extracting out of their American Lawyer magazine publishes AmLaw 200 lists of top law firms These the Fortune 500 equivalent for law firms. criteria for the top law firms on their describes “revenue per lawyer” “of law and profits that has turned law firm managers contortionists.” increases these metrics by “surging demand and Affiliate Competency for 12:00 25% to "News" related and Affiliates & Writing Small Business Where for flexible -Balancing Life (for resource interpreter, National Association of Freelance Legal Professionals: Quality vs. Quantity -the billable Page 2 of 6 http://freelancelegalprofessionals.blogspot.com/2009/01/quality-vs-quantity-billable-hour.... 1/28/2009 Quality ... years and it’s never happened. Maybe young people will come up Upcoming NAFLP and Affiliate with a different mousetrap.” However, [Mr. Gary] added, “I still Events think it’s the best way to measure value because it is a Business Competency for Lawyers mechanism of measuring the amount of work that a lawyer did Tele-webinar for a client on a particular matter.” Tuesday, October 21, 2008 9:00 a.m. Pacific/12:00 noon With all due respect, hogwash! The amount of time spent on a project Eastern is not an accurate reflection of the end product’s value. Lawyers have Register Now forgotten that basic truth. (NAFLP members get 25% discount) Early in my career I found myself as plaintiff’s counsel in a small civil matter against a defendant who was a part-time lawyer who seemed Keep up to date with "Legal to revel in the opportunity to “practice” law. I vividly recall receiving Outsourcing in the News" and a 25-page, single-spaced motion to dismiss the case. I can only available books related to legal describe reading the verbose brief as exceedingly painful on the eyes outsourcing at and brain. My opposition brief was one page, double-spaced, setting NAFLP Resource Page forth the statute supporting my position. I won the motion. Which brief was more “valuable”? The one that took at least 25 hours to write or the one that successfully convinced the judge? Sponsors and Affiliates In a more recent example of overkill, a federal judge in New York City Batten Accountancy found a $100,000-a-day fee application from law firm Dewey & Legal Research & Writing Pro LeBeouf for receivership work to be excessive. U.S. District Judge Denny Chin said that the fee request was “excessive in the context of FreelanceLaw, Inc. a securities receivership where hundreds of victims of fraud have Legal Center for Small Business suffered substantial losses” and he questioned the firm’s billing rates and Entrepreneurs which were as high as $950/hr for some partners, $605/hr for some associates, and $285/hr for summer associates. Helpful Links Darlinghill: Where Life and Billing rates that high deserve far more than "questioning" and partial Flexible Lawyering Meet and temporary reduction in fee allowances (Judge Chin said they (includes postings for flexible could reapply for the fees later in the case). Billing $285/hr for work lawyer jobs) done by law students (remember, summer associates have not even FreelanceSwitch (general completed law school) is unconscionable by any standard. freelancing information) Clients who pay such excessive fees, however, especially large How To Practice Law in Bunny corporate clients, need to acknowledge their own role in encouraging Slippers outrageous billing by lawyers. Law firm prestige, and thus the law JDBliss -Balancing Life and the firms that tend to attract higher net-value clients, has for too long Law been measured on the same scale as Fortune 500 companies -by FreelanceLaw Blog (for law annual revenue. Not cost efficiency. Not creative thinking. Not being firms) able to demonstrate insightful legal opinions. Not being successful in NAFLP resource page any other arena than extracting the most money out of their clients. JDWired Blog Every year the American Lawyer magazine publishes AmLaw 100 and Law Students Building a Better AmLaw 200 lists of supposed top law firms in the country. These lists Legal Profession have become the Fortune 500 equivalent for law firms. I verified AmLaw’s criteria for choosing the top law firms on their website; it What is a freelance legal was disturbing. AmLaw describes “revenue per lawyer” as being “the professional? key measure of law firm financial success, and profits per partner [as] the metric that has turned law firm managers into contortionists.” A freelance legal professional is an They go on to credit increases in these metrics by “surging demand attorney, paralegal, interpreter, blogspot.com/2009/01/quality-hour... Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=64495603-38d2-4154-b2f1-2163eb34a306the Association 92121 admin@naflp.in equity partners (the law and increase the number of non-equity associates. (see article at "Lessons the Am Law 100 – “surging demand of “high-end” as being on the AmLaw The unrelenting rate price you are and rate hikes will keep increasing these firms until you, the client, say "no." You are “over “in legal services outrageous of economic with companies and only the strong and flexible companies survive. paying outrageous look for that will efficient services. survival may depend on solution-services to your clients is a to mousetrap 100, billable Evan Chin, pedigree vs. quality, 6:35 AM provides services on a nonemployee/commonly appearance (hours Competency for National Association of Freelance Legal Professionals: Quality vs. Quantity -the billable Page 3 of 6 http://freelancelegalprofessionals.blogspot.com/2009/01/quality-vs-quantity-billable-hour.... 1/28/2009 Quality ... professional that provides services continuing slowdown in naming equity partners (the top echelon of to attorneys or law firms on a nonlaw firms) and increase in the number of non-equity associates. (see employee/independent contractor the referenced article at "Lessons of the Am Law 100 2008"). basis. Other terms commonly used are contract attorneys, appearance Corporate clients -the “surging demand for high-end legal services” is attorneys, contract paralegals, etc. you, accepting the definition of “high-end” as being on the AmLaw 100 list. The “unrelenting annual rate hikes” is the price you are Contributors paying for accepting this criteria and rate hikes will keep increasing at these firms until you, the client, say "no." You are Melody Kramer choosing “pedigree” and "prestige" over “quality” in legal services and Amanda Mineer have only yourself to blame for the outrageous legal bills on your desk. Blog Archive In this time of economic downturn, with companies failing right and January (4) left, only the strong and flexible companies will survive. Finally, a substantial incentive to reinvent the antiquated mousetrap of billable December (1) hours has emerged. Corporate clients, stop paying outrageous hourly November (1) rates and look for quality legal counsel that will provide cost-efficient October (2) and useful services. Your company's survival may depend on it. September (2) Lawyers, law firms, and freelance legal professionals, take the lead in offering cost-effective, solution-based services to your clients at a August (4) price that is a good value for the money. July (10) June (4) Here's to building a better mousetrap in 2009! May (3) April (3) Posted by Melody Kramer at 6:35 AM March (6) Labels: American Lawyer, AmLaw 100, billable hours, economic February (2) downturn, Evan R. Chesler, Judge Denny Chin, pedigree vs. quality, quality vs. quantity January (3) Topic index 0 comments: AALS (1) Post a Comment ABA (1) Adam Smith (1) Home Older Post Allison Shields (1) Subscribe to: Post Comments (Atom) American Lawyer (2) Contact the Association AmLaw 100 (2) Ashby Jones (1) 9930 Mesa Rim Rd #1600 associate salaries (2) San Diego, CA 92121 admin@naflp.org Aviva Cuyler (1) Axiom Global Inc. (2) Batten Accountancy (1) bigger not better (1) billable hours (5) Bruce MacEwan (1) Business Competency for Lawyers (1) Cheryl Stephens (1) blogspot.com/2009/01/quality-hour... Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=64495603-38d2-4154-b2f1-2163eb34a306Suisse hours management National Association of Freelance Legal Professionals: Quality vs. Quantity -the billable Page 4 of 6 http://freelancelegalprofessionals.blogspot.com/2009/01/quality-vs-quantity-billable-hour.... 1/28/2009 Quality ... choice (3) Cisco (1) CNN (1) contract attorneys (10) contract lawyers (10) cost efficiency (1) Credit Suisse Group (1) cyberlaw (1) Daniel Polsby (1) Davis LLP (1) economic downturn (1) economy (1) Ed Poll (1) education (1) Esq. (1) Evan R. Chesler (1) financial planning (1) flexible hours (2) Fortune 500 (1) Fortune magazine (1) FreelanceLaw (1) FreelanceSwitch (1) General Electric (1) Google (2) inhouse counsel (1) InHouseBlog (1) internet (1) interpreters (2) JD Supra (1) JDWired (1) Jeff Bleich (1) job satisfaction (2) Judge Denny Chin (1) Judi Sanzo (1) Labor Day (1) labor unions (1) law practice management (1) law school ranking (1) LeavingTheLaw.com (1) legal education (1) legal profession (1) blogspot.com/2009/01/quality-hour... Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=64495603-38d2-4154-b2f1-2163eb34a306and Writing seminar (The Art Forum Sponsored Event Legal Writing agencies to News National Association of Freelance Legal Professionals: Quality vs. Quantity -the billable Page 5 of 6 http://freelancelegalprofessionals.blogspot.com/2009/01/quality-vs-quantity-billable-hour.... 1/28/2009 Quality ... 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